Quote:
Originally Posted by Barefootsies
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If they are successful all the fast food industry will do is raise their prices.
People love Walmart because they are cheaper than everyone else. How is it that they are cheaper? Their cost of goods wasn't less than K-mart when Walmart got going. They competed on a level playing field. What they did was start a price war with everyone else. The masses liked that and supported it. Once Walmart started to win the battles, they got leverage over their vendor base. So now they do pay less for the COG than everyone else. And then to make sure they would crush whoever came at them, they lowered prices again.
And the masses benefit.